The Irish government must respond to the severe economic downturn caused by the COVID-19 pandemic; such a response may act to stimulate the economy or promote living within our means as set out by the theories of Keynesian Economics and Economic Liberalism respectfully.
Compare and contrast these different potential responses in at least four sectors of the Irish economy.
LO2. Explain the broad principles of macroeconomics and the role of government intervention
LO3. Describe the main features of the Irish economy
LO4. Interpret standard economic models of the market and of market intervention
In your answer you should:
Your answer should have an introduction, main body, and conclusion. While some attention of your answer should be focused on the theoretical definition, the main focus of your answer should concentrate on the extent to how the state may act and the economic arguments both for and against these actions by using the course material and external evidence such as CSO data.
It is important that you answer the question directed at you. In essence, the question is seeking a response to contrasting arguments around government intervention in the Irish economy. Your answer should be a well-balanced economic argument identifying the various options open to the government.
Diagrams, tables, graphs, and their descriptions are to be attached as appendixes and are excluded from the overall word count, you should reference them in your answer.
Your answer must contain a reference list in a separate section at the end of your answer. References and the reference section are also excluded from the word count.